874 IOWA DEPARTMENT OF AGRICULTURE. 



Influence on business as the financial condition of the farmer. His pros- 

 perity is the basis of all prosperity, no matter what line of business one 

 may be engaged in. He who thinks the farmer has nothing to do with the 

 business and success of this world is sound asleep. 



The world has always been and ahvays will be dependent upon the 

 farmer for subsistence, for there never has been a time in the past when 

 farming was not the great leading industry and it will always continue 

 to be so. This, however, is not true of the banker in the same sense, 

 although we find traces of him at a very early period. In Bible times 

 he was called a "money changer" and to change money was in fact all 

 he did. L.ater we find him erecting large, strong vaults and in them 

 was kept money left by depositors who bore the expense of management, 

 in proportion to their deposits. The banker at that time was really a 

 servant of the depositor and was paid merely for receiving and guarding 

 the money. It was an expense in those days to deposit money with 

 bankers, but some place had to be arranged to keep it safe beyond the 

 reach of burglars, fires, and the elements. 



However, as time went on, these bankers began to notice that depos- 

 itors never drew all their money at one time, and that they could just as 

 well loan a portion of it with comparative safety. It was at this time 

 that the bank began to develop, until to-day we find it one of the strongest 

 and most influential forces in business. From that time interest was paid 

 on deposits left for certain periods of time, and is ceased to be an expense 

 to the depositor, but on the contrary it was profitable and a great conven- 

 ience. Nearly all banks in this country pay interest on deposits left for 

 certain length of time, because they can loan it at a higher rate of interest. 

 It matters not whether your business is large or small, wheher you are 

 rich or poor, you will find the bank a great convenience, for there are 

 few of us who do not at some time handle money. Banks are in a sense 

 public servants and all classes of people can make profitable use of them. 



We have often heard of people keeping money at home in an old 

 stocking or burying it in the ground, but this is seldom done now, for 

 they have found out that It is a great deal safer and more convenient 

 to deposit it with the bank on interest or subject to check. A very large 

 percentage of the world business is done on credit. When the farmer 

 markets some of his produce he seldom gets the cash for it, but is handed 

 a check on some bank, which he cashes there or has it placed to his 

 credit, and he in turn checks against this credit to pay his bills. It is 

 a great deai more convenient and much safer to carry a check book than 

 a lot of money, for it is often hard to make change, and the checks are 

 receipts in themselves and the stub leaves a perfect record of payments. 

 You can not loose your money in the bank, nor can you part with it, 

 except by written order. 



The bank has grown to be such an important factor in business that 

 no one thinks of going into business of any kind without keeping a bank 

 account. The vei\v condition of the country in which you live is reflected 

 in the bank statement published. When you find banks loaded with 



